Indemnity Principle

Business, Legal & Accounting Glossary

Definition: Indemnity Principle




Full Definition of Indemnity Principle


The principle that the purpose of litigation for the Claimant is to achieve compensation, not to make a profit at the expense of the defendant. The claimant should recover what is necessary to effect restitution and not a penny more. For centuries it has been held that this principle is violated by Contingency fee arrangements, but the restrictions on such arrangements have been relaxed somewhat in the last decade.


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Indemnity Principle. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. September 27, 2021 https://payrollheaven.com/define/indemnity-principle/.
Chicago Manual of Style (CMS):
Indemnity Principle. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/indemnity-principle/ (accessed: September 27, 2021).
American Psychological Association (APA):
Indemnity Principle. PayrollHeaven.com. Retrieved September 27, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/indemnity-principle/

Definition Sources


Definitions for Indemnity Principle are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th April, 2020 | 1 Views.